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Sources: ACC presidents meeting on conference expansion to include Cal, Stanford and SMU
Three weeks of deep exploration into a three-team expansion plan including Stanford, Cal and SMU appears to coming to an end.
sports.yahoo.com
This is one of the best articles i've seen on ACC revenue and expansion. It provides alot of useful color.
Let's start with this:
"The ACC’s television contract with ESPN includes a pro-rata clause requiring the network to increase the value of the deal by one Tier 1 share for every new member — believed to be about $24 million a share, or about 70% of a full ACC share, which includes Tier 1-3."
So ESPN's yearly payment to ACC right now is around $34M if you include all 3 tiers. The pro rata is just for Tier 1 (which is the biggest piece).
"The significant reduction of shares from Cal, Stanford and SMU is not permanent. The schools would see shares escalate over the course of the grant-of-rights, a binding agreement running through 2036 that they are required to sign. Also, the three schools will receive non-TV distribution annually from the league, including evenly distributed monies from the CFP and NCAA tournament as well as the additional revenue from the incentive pool."
So their shares will increase over time, that is to be expected but the first time i've seen it in print.
Finally there is this:
"For ESPN, the league would retain SMU’s broadcasting rights (it now owns the Mustangs' rights as part of the American Athletic Conference package) and regains the rights of Stanford and Cal. ESPN would also receive an increase in in-network rates for now having schools reside in California and Texas."
The last part is I assume ACC Network carriage rates. So while that is not included in what ESPN will pay to the ACC, increase in carraige rates will mean more revenue for ESPN through the ACC Network and ACC will get its contracted percentage of that so money from ACC Network should increase as well.